Hsieh Ming 4

What Happened Ming Hsieh, chairman and CEO of Fulgent Genetics (FLGT), reported a derivative transaction on March 9, 2026: the Hsieh Trust cancelled a prepaid variable forward agreement that previously covered 750,000 shares. The cancellation required the Hsieh Trust to pay the counterparty bank $10,708,875. The Form 4 shows the action as an “other disposition” (code J) of 750,000 derivative shares, but this was a contractual cancellation/payment rather than an open‑market sale of the underlying shares.

Key Details

• Transaction date: 2026-03-09; Form 4 filed 2026-03-11 (timely within the 2‑business‑day window).
• Shares affected: 750,000 common shares previously subject to a prepaid forward agreement (no per‑share trading price; payment was $10,708,875 total).
• After the payment and cancellation the 750,000 shares are no longer pledged to the bank and remain held by the Hsieh Trust (no change in beneficial ownership reported).
• Relevant footnotes: F5 describes the original Aug 21, 2023 prepaid variable forward; F6 describes the March 9, 2026 cancellation and payment. F1–F4 describe various trusts/UTMA accounts and Mr. Hsieh’s trustee/custodial roles and voting/dispositive powers.
• Transaction code: J (other acquisition or disposition) — indicates a non‑standard derivative action rather than a market sale or purchase.

Context A prepaid variable forward is a contractual arrangement (not a direct sale) that can obligate the holder to deliver shares or cash later; cancelling it typically requires a cash payment to the counterparty and releases the underlying shares from the pledge. Because this was a contract termination, it does not necessarily signal a market sell by the insider — the shares remain beneficially held by the Hsieh Trust but are now unencumbered.